Oregon is set to tap into the developing next generation auto sector as a consortium of companies, with the assistance of potato chip maker Kettle Foods, are finalizing plans to construct a manufacturing plant that will produce cleaner new biodiesel fuel.

Plans are underway to break ground on the first biodiesel manufacturing plant in the North Western US state as part of a joint venture between Oregon-based SeQuential Biofuels, biodiesel pioneer Pacific Biodiesel of Hawaii, and several private investors.

SeQuential-Pacific has purchased a one-acre industrial parcel on the Kelly Point peninsula and permit applications are being filed with the City of Portland to start construction by August. Production would then begin in November with the facility expected to generate in its first year a million gallons of high quality, AS certified biodiesel from used cooking oil supplied by local companies, such as Kettle Foods.

Our goal from the beginning has been to make renewable fuel choices readily available to local businesses and individuals, said Tomas Endicott, managing partner of SeQuential Biofuels. With demand growing, we’re working aggressively to expand biodiesel availability, as well as fleet and retail markets for biodiesel throughout the Pacific Northwest.

In support of the effort, Kettle Foods, maker of America’s best-selling all-natural potato chips, will supply all of its used cooking oil to the new facility. The company is the first natural foods manufacturer to recycle all of its waste oil into biodiesel and the first of its size to contribute to the new facility.

We’ve been looking for an opportunity to strengthen our commitment to biodiesel for a long time, said Cameron Healy, founder of Kettle Foods, which already runs a fleet of company cars on biodiesel. SeQuential-Pacific is the first company to provide us with both a reliable source to recycle our used cooking oil, as well as a stable supply of biodiesel. We think it’s a great exchange – healthy oil for healthy fuel.